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Union Bank Releases Third Quarter Earnings, Announces Cash Dividend of $0.10 Per Share

GREENVILLE, N.C.--(BUSINESS WIRE)--

Union Bank (UBNC) reports earnings results for the quarter and nine months ended September 30, 2019 and announces cash dividend of $0.10 per share.

Union Bank (the “Bank”) is pleased to report earnings results for the quarter and nine months ended September 30, 2019. Unaudited net income for the nine months ended September 30, 2019 was $5,313,000 or $0.89 per basic common share, compared to $5,000,000, or $0.83 per basic common share for the same period in the prior year. This represents a 6.3% increase in earnings for the comparable nine-month periods. Return on average assets and return on average equity was 0.92% and 8.69%, respectively, for the nine months ended September 30, 2019. Return on average tangible common equity was 10.61% for the nine months ended September 30, 2019.

Unaudited net income for the third quarter of 2019 increased 9.4%, to $1,904,000, or $0.32 per basic common share, compared to $1,739,000, or $0.29 per basic common share for the quarter ended September 30, 2018. Return on average assets and return on average equity was 0.97% and 8.95%, respectively, for the quarter. Return on average tangible common equity was 11.04% for the quarter ended September 30, 2019.

Total assets as of September 30, 2019 were $787.6 million, compared to total assets of $745.2 million as of December 31, 2018, and $730.5 million as of September 30, 2018. Total loans, net of reserves, were $550.5 million and deposits were $656.9 million, as of September 30, 2019 compared to net loan balances of $491.7 million and deposits of $611.6 million as of September 30, 2018, and net loan balances of $504.6 million and deposits of $627.2 million as of December 31, 2018. This represents annualized loan and deposit growth of 12.2% and 6.3%, respectively, for the nine-month period ended September 30, 2019. Asset quality remains excellent, as total non-performing assets were 0.08% of total assets as of September 30, 2019. Capital levels remain strong, total risk-based capital was 13.73%, common equity tier 1 to risk-weighted assets was 11.84%, and the Bank’s tier 1 leverage ratio was 8.99% at quarter-end. As of September 30, 2019, shares of common stock issued an outstanding totaled 5,973,124.

Rob Jones, President and Chief Executive Officer stated, “We are pleased to report a record quarter of earnings as well as solid results for the first nine months of 2019.” Jones noted, “Earnings, adjusted for Day 2 acquisition accounting, increased approximately 11.91% for the nine-month period ended September 30th, compared to the same period last year.” Jones continued, “As I stated last quarter, solid loan growth helped offset margin compression associated with increased interest expense and falling yields across the yield curve. We expect that the industry will continue to struggle with margin compression until interest rates return to a more traditional curve.”

Union Bank also announced today that its Board of Directors, on September 19, 2019, approved a semi-annual cash dividend of $0.10 per share on the Bank’s common stock. The cash dividend is payable on December 31, 2019 to shareholders of record at the close of business on December 13, 2019. In addition, Union Bank maintains an active stock repurchase program. The Bank will continue to buy shares of its common stock at prices that are determined to be favorable to shareholders.

Union Bank is headquartered in Greenville, North Carolina and operates 15 branches located in 11 counties throughout Eastern and Central North Carolina. Union Bank stock is traded on the OTCQX under the symbol UBNC.

This press release includes certain forward-looking statements in reliance on the “safe-harbor” provisions of The Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially from those anticipated in any such forward-looking statements. The Bank undertakes no obligation to update or revise any such forward-looking statements. This press release contains financial information determined by methods other than in accordance with GAAP. The Bank’s management uses these non-GAAP financial measures in their analysis of the Bank's performance. These measures typically adjust GAAP performance measures to exclude the effects of transactions that are infrequent in nature. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Bank’s core businesses. 

 
 
 

Union Bank

Statements of Operations

($000's omitted except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

(un-audited) (un-audited) (un-audited) (un-audited)
 
Interest Income

$

                  8,645

$

                  7,676

$

                25,395

$

                22,817

 
Interest Expense

                  1,780

                  1,324

                  5,195

                  3,355

 
Net Interest Income

                  6,865

                  6,352

                20,200

                19,462

 
Provision for Loan Losses

                     281

                          7

                     753

                     537

 
Net Interest Income after Provision for Loan Losses

                  6,584

                  6,345

                19,447

                18,925

 
Noninterest Income

                     955

                     797

                  2,723

                  2,497

 
Noninterest Expense

                  5,157

                  4,963

                15,526

                15,109

 
Income Before Income Taxes

                  2,382

                  2,179

                  6,644

                  6,313

 
Income Taxes

                     478

                     440

                  1,331

                  1,313

 
Net Income

$

                  1,904

$

                  1,739

$

                  5,313

$

                  5,000

 
Net Income Available Per Basic Common Share

 $ 

                    0.32

 $ 

                    0.29

 $ 

                    0.89

 $ 

                    0.83

  

 
 

Union Bank

Balance Sheets

($000's omitted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of the Period Ended

 

 

 

 

September 30,

 

 

December 31, 

 

 

September 30,

 

 

 

 

2019

 

 

2018

 

 

2018

ASSETS

 

(un-audited)

 

 

*

 

 

(un-audited)

 
Cash and due from banks

$

                13,159

 

 $ 

                   9,355

 

 $ 

                   8,526

 

Interest-bearing deposits with banks

                17,693

 

                25,753

 

                39,062

 

Investment securities available-for-sale

              148,395

 

              148,575

 

              133,988

 

 
Loans - gross

              559,302

 

              513,675

 

              501,929

 

Net fair value marks

                 (3,883

)

                 (5,047

)

                 (6,312

)

Allowance for loan losses

                 (4,951

)

                 (4,046

)

                 (3,939

)

Net Loans

              550,468

 

              504,582

 

              491,678

 

 
Bank premises and equipment, net

                19,109

 

                16,793

 

                16,990

 

Other real estate owned

                      108

 

                      327

 

                      408

 

Goodwill

                12,897

 

                12,897

 

                13,466

 

Core deposit intangible

                   1,405

 

                   1,951

 

                   2,153

 

Bank-owned life insurance

                16,783

 

                16,450

 

                16,338

 

Other assets

                   7,606

 

                   8,503

 

                   7,844

 

 
Total Assets

$

              787,623

 

 $ 

              745,186

 

 $ 

              730,453

 

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Liabilities
Deposits

$

              656,923

 

 $ 

              627,171

 

 $ 

              611,644

 

Advances from the Federal Home Loan Bank

                35,000

 

                32,000

 

                36,000

 

Subordinated debentures

                   6,000

 

                   6,000

 

                   6,000

 

Accrued expenses and other liabilities

                   5,356

 

                   1,821

 

                   1,757

 

 
Total Liabilities

              703,279

 

              666,992

 

              655,401

 

 
Stockholders' Equity
Common stock, no par value

                71,175

 

                71,879

 

                69,199

 

Retained earnings

                11,767

 

                   7,629

 

                   8,665

 

Accumulated other comprehensive income / (loss)

                   1,402

 

                 (1,314

)

                 (2,812

)

 
Total Stockholders' Equity

                84,344

 

                78,194

 

                75,052

 

 
Total Liabilities and Stockholders' Equity

$

              787,623

 

 $ 

              745,186

 

 $ 

              730,453

 

 
 
* Derived from audited financial statements

 

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